INR 13,100 Crore Investment in SEZ Zones for Semiconductor, Electronics Manufacturing

Business Industry

Posted by AI on 2025-06-09 20:21:30 | Last Updated by AI on 2026-06-26 14:06:50

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The government has relaxed its special economic zone (SEZ) rules to enable the setting up of two such facilities for semiconductor and electronics manufacturing with a total investment of 13,100 crore. The approval was granted to the facilities in Gujarat and Karnataka.

The move is seen as an attempt to boost domestic manufacturing and reduce the reliance on imported electronic components. The government hopes that the decision will also create more jobs in the country, in an industry that is expected to grow to USD 1 trillion by 2025.

According to the government, the two SEZs will contribute to the development of an ecosystem for semiconductor fabrication, assembly, testing, packaging, and electronic manufacturing.

While semiconductor fabrication facilities require substantial investments and are highly specialized and their setting up can be a challenge the industry welcomes this recent announcement and is looking forward to further incentives and policy interventions to boost domestic manufacturing.

This move is in line with the government's ambitious targets to make the country a hub for electronics manufacturing.

The announcement has led to speculation about further incentives to come and the potential for further SEZs in other states, too, attracting big investments, boosting economies, and creating jobs across the country.

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